2. EKITI STATE OF NIGERIA
A LAW TO PROVIDE PUBLIC PRIVATE PARTNERSHIPS,
ESTABLISH THE OFFICE OF PUBLIC PRIVATE PARTNERSHIPS
AND FOR OTHER CONNECTED PURPOSES
NO.12 OF 2011
EKITI STATE OF NIGERIA
ENACTED BY EKITI STATE HOUE OF ASSEMBLY AS FOLLOWS:
1. ESTABLISHMENT OF THE OFFICE
(i) There is established an office to be known as the office of Public
Private Partnership (referred to in this law as “the Office”)
(ii) The office shall be a body corporate with perpetual succession
and a common seal.
(iii) The office may sue or may be sued in its corporate name and may
hold and dispose of any movable or immovable property.
3. 2. ESTABLISHMNT OF ADVISORY BOARD OF THE OFFICE
(i) There is established an Advisory Board (in this Law referred to as
the “Board”) for the Office.
(ii) The Advisory Bard shall consist of:
(a) The Chairman
(b) Four other members appointed by the Governor.
(c) The tenure, allowances and other conditions of the
members of the Advisory Board shall be as determined by
the Governor.
3. FUNCTION OF ADVISORY BOARD
The Board shall render advice on the objectives, functions and power of
the office pursuant to the provisions of this Law.
4. PROCEEDINGS OF THE ADVSORY BOARD
The provision contained in the first Schedule to this Law shall have
effect with respect to the proceedings of the board and other matters
mentioned in it.
5. OBJECTIVES OF THE OFFICE.
1. (i) In performing its functions and exercising its powers, the
primary objective of the Office shall be to develop and
maintain public infrastructure of public assets and provide
social amenities and other facilities through Public Private
Partnerships in the State.
4. (ii) To provide appropriate regulatory framework for the
evolvement Public Private Partnership in the management
of public infrastructure or public assets in the state.
(iii) Initiate the process and process and suggest appropriate
public infrastructures and public assets for Public Private
Partnership.
2. (i) In seeking to achieve its objectives, the Office shall;
(a) Initiate and develop public infrastructure and public
assets development strategies for the state by means
of
Public Private Partnerships;
(b) Advise on policies that will promote and sustain Public
Private Partnerships for the provision and development
of public infrastructure or public assets in the State;
(c) Co-ordinate policies and programmes of the State with
respect to Public Private Partnerships for the provision
and development of public infrastructure or public assets
5. in the state; and
(d) Ensure that Public Private Partnerships for the provision and
development of public infrastructure of public assets in the
State are in accordance with prevailing Government Policy and
Public interest.
6. THE FUNCTION OF THE OFFICE
The functions of the Office shall be to:
(i) collaborate with appropriate Government Institution organs or
bodies in conducting pre-qualification process for private
investors willing to enter into Public Private Partnership in
expression of interest in management or Public infrastructure and
Public Assets.
(ii) Initiate procurement of Public Private Partnerships for the
development of public infrastructure and public assets by
conducting pre-qualification process for private investors willing
to enter into Public Private Partnerships with the state based on
request for expression of interest.
(iii) Evaluate expression of interest by private investors interested in
Public Private Partnerships with the state and issue a preferred
mandate to the Ekiti State Public Procurement Board for award;
6. (iv) Act on behalf of the Government or any of its agencies in Public
Private Partnerships under this Law and develop optimal means of
financing the cost of public investment project on order to
achieve value for money;
(v) Ensure on behalf of the Government of any of its agencies that all
aspects of financing, refinancing and insurance of Public Private
Partnerships within the public sector;
(vi) Prepare and develop on behalf of the State, strategic master plans
for Public Private Partnerships;
(vii) Initiate the development of public asset through Public Private
Partnerships in the State;
(viii) Form, or cause to be formed, Limited Liability Companies or
Limited Liability Partnerships, subject to the provisions of the Law
for the purpose of securing finance for public investments
projects or to facilitate Public Private Partnerships;
(ix) Verify and monitor performance of the terms and conditions of
concession agreements by concessionaries;
(x) Advise the Government on matters relating to financing,
construction and maintenance of public infrastructure or public
assets by means of Public Private Partnerships in the State; and in
particular, to identify and make recommendation to the
Government with respect to the acquisition of land required for
such purposes;
7. (xi) Undertake or conduct any research investigations or inquiries and
collect information relating to public infrastructure or public
assets in general;
(xii) Liaise with bodies of professional persons; and private agencies
performing work with regard to public infrastructure of public
assets in general; and
(xiii) In relation to Public Private Partnerships initiated by the Office, it
shall:
(a) ensure the provision by the concessionaire of such facilities
and amenities that are necessary for the users of public
infrastructure of public assets;
(b) oversee the development, operation and maintenance of
public infrastructure or public assets provided by means of
Public Private Partnerships and such other facilities necessary
or adjacent to such public infrastructure or public assets; and
(c) satisfy, discharge and perform the obligation of the Office
and the State, to uphold and observe the terms of any
concession agreement subject to the provision of this Law.
8. 7. POWER OF THE OFFICE
The Office shall have power to:
(i) advise the Ekiti State Public Procurement Board for the award or
concession to private investor interested in Public Private
Partnerships of design, construction, operation, management,
control, maintenance, rehabilitation and financing of public
infrastructure or public assets;
(ii) negotiate with prospective private partners;
(iii) obtain from the government agency or private institutions,
statistical or other information relevant to the functions of the
Office;
(iv) inspect and monitor concessionaries to ensure compliance with
the terms of any concession agreement;
(v) designate a public infrastructure or public assets as a service
charge, user fee or toll paying public infrastructure or public asset
and specify the condition for the use of such infrastructure or
public asset and specify the condition for the use of infrastructure
or assets;
(vi) specify the classes of vehicles that may use a tool road under
Public Private Partnership made pursuant to this law;
9. (vii) liaise and co-operate with all government agencies and
parastatals with respect to private investor’s participation in the
provision and development of public infrastructure or public
assets;
(viii) pursuant to and in accordance with the provision of this Law,
approve the amount of money that may be charged by private
operators with respect to any public infrastructure, public assets
or amenities as toll or user fees;
(ix) establish and operate an information management system
concerning public infrastructure or public assets and projects;
(x) perform any other function as may be assigned to it by the
Governor under this Law or any other enactment; and
(xi) do all things that are necessary or expedient for the performance
of its functions, including the engagement from time to time of
consultants and advisers and other service providers.
8. APPROVING AUTHORITY
The award of a Concession by the Ekiti State Public Procurement Board
is subject to the approval of the Governor as the approving authority.
10. 9. PROCUREMENT OF PUBLIC PRIVATE PARTNERSHIPS
(i) The Office may give guarantees, letters of comfort or
undertakings in respect of any Public Private Partnerships or
concession agreement with the approval of the approving
authority.
(ii) The Office shall be a producing entity for the purpose of the Ekiti
State Public Procurement Law and shall comply with the
intendment of that Law.
(iii) The Office may undertake restricted or emergency procurements
in accordance with the provision of the Ekiti State Public
Procurement Law.
10. APPOINTMENT OF DIRECTOR-GENERAL
(i) The Governor shall appoint for the Office a Director-general who
shall be the Chief Executive Officer.
(ii) The Director-General shall be a qualified and registered
professional who must not be below GL 16 and with
cognate/related experience in Business Administration and
Management.
11. (iii) The Director-General shall:
(a) be responsible to the Board for policy direction and the day-
to-day administration of the Office
(b) hold Office upon such terms and conditions as may be
contained in his letter of appointment; and
(c) hold Office for a period of four (4) years in the first instance,
and may be reappointed by the Governor for another term of
4 years.
(2) REMOVAL OF DIRECTOR – GENERAL
The Director- General shall be removed by the Governor, if he is
satisfied that it is not in the interest of he Board that such Director-
General should continue in the office, provided that the Governor
shall also have power to suspend the Director-General, if deemed
appropriate.
11. OTHER STAFF OF THE OFFICE
(1) The Office may, from time to time engage such other number of
employees as may be necessary for the proper and efficient conduct
of the business of the Office.
12. (2) The term and conditions of service (including remuneration,
allowances, benefits and pensions) of the employees of the Office
shall be as determined by the Board after consultation with any
committee, agency or other body responsible for determining
salaries in the State.
(3) Notwithstanding the provisions of subsection (2) of this section the
Governor may, upon the recommendation of the Board approve such
remuneration allowances and benefits for the Director-General or
any other employee of the Office.
12. ESTABLISHMENT OF SPECIAL PURPOSE COMPANIES OR LIMITED
LIABILITY PARTNERSHIPS
The Office with the approval of the Governor may cause to be formed,
Limited Liability Partnerships Limited Liability Companies for the
purpose of financing Public Private Partnership projects or facilitating
such projects where, in the opinion of the Office, it is necessary or
expedient to do so in order to discharge its functions under this Law.
13. INSPECTORATE DEPARTMENT
(i) There shall be an inspectorate Department of the Office staffed
with persons with requisite training and experience designated as
public infrastructure inspectors who shall report to the Director-
General.
13. (ii) Public infrastructure inspectors shall undertake inspection of
public infrastructure projects or public assets from time to time
and shall monitor the application of appropriate service charges,
user fees or tolls by concessionaries, in accordance with the terms
of relevant concession agreement in the absence of any
regulation to that effect.
14. APPEAL FROM DECISIONS OF THE OFFICE
Without prejudice to any terms as to dispute resolution as agreed in any
relevant concession agreement, and to any other rights of recourse available
at law, where any concessionaire is dissatisfied with any omission or decision
or exercise of power by the Office, may appeal to the Governor through the
Ekiti State Public Procurement Board.
15. FINANCIAL PROVISION
1. (i) The Office shall prepare and submit to the Governor an
annual estimate of its income and expenditure not later than
30th June of each year for approval by the Governor.
(ii) The Office shall keep proper account in respect of each year
from 1st January to 31st December in accordance with the
prevailing audit policy of the State.
14. 2. Other sources of fund of the office shall consist of:
(i) Gifts, loans, grants or aid from any agency, institution,
bilateral and multinational organizations or any Government;
(ii) A percentage of service charge or user fees as may be
prescribed in the Office’s regulation or agreed in the relevant
concession agreement in the absence of such regulation;
subject to the approval of the Governor; and
(iii) All other sums which may become payable to or vested in the
Office in respect of any matter incidental to its functions.
16. POWER TO BORROW
The Office shall have power to borrow money for the purpose of
discharging its function under this Law subject to the approval of the
Board.
17. BANK ACCOUNT
The Office shall keep and operate bank accounts for its fund with a
reputable bank or banks as may be duly authorized by the Governor in
that behalf.
18. APPLICATION OF THE FUNDS
15. The fund of the Office shall be utilized for the following purposes:
(i) Salaries, remuneration, fees allowances of staff agent or
consultants to the Office;
(ii) For the development and maintenance of any property vested in
or owned by the Office;
(iii) For maintaining general financial reserves subject to general or
special directives that may be given in that behalf by the Governor
in accordance with the provisions of this Law; and
(iv) To defray other expenses authorized by the Office in carrying out
its functions under this Law.
19. ANNUAL REPORT
The Office shall prepare and submit an annual report in accordance with
the prevailing audit policy of the State not later than 30th day of June each
year, a report to the activities of the Office during the immediate
preceding year and shall include in such report a copy of the audited
accounts of the Office and the Auditor’s report.
20. DESIGNATION OF PUBLIC INFRASTRUCTURE ASSETS
16. Notwithstanding the provision of any Law, the office may designate any
public infrastructure asset, any road, bridge or highway within the state
and subject to the constitutional authority of the Government a public
infrastructure or public assets with respect to which user fees or toll shall
be payable for the purpose of this Law.
21. AUTHORIZATION TO COLLECT USER FEES OF TOLLS
Notwithstanding the provision of any Law, the Office may in the relevant
concession or other agreement, authorize any person, in return for
undertaking such obligations as may be specified in a concession or
project agreement with respect to the design, construction, maintenance,
operation, improvement of financing of pubic infrastructure or public
assets, to enjoy specific rights as may be stated in the concession or
project agreement including the rights to levy, collect and retain service
charges, user fees or tolls in respect of the use of the public infrastructure
or public assets.
22. USER FEES OR TOLL REGULATION
(1) The Office may, by regulation, specify the:
17. (a) Service charge, user fees or tolls payable in respect of designated
public infrastructure or public infrastructure or public assets; and
(b) Conditions under which a member of the public will access the
use of public infrastructure or public assets;
(2) A concessionaire shall propose for the approval of the Office service
charge, user fees or may review same in relation of the use of the
public infrastructure or public assts by reference to such
circumstances or combination of circumstances or classification as
the office may, after consult.
(3) The Office may provide for service charge, user fees or tolls to be
charged for a period specified in or determined in accordance with
the regulations, which may provide for a period when payment of
service charge, user fees or toll shall end:
(a) On date, or at the end of the period specified in the regulations;
or
(b) On a date determined by reference to:
(i) The achievement of a specified financial objective; or
(ii) Such other factors or combination of factors as may be
specified in the regulations.
(4) Where a concession agreement has been executed in accordance
with this Law, the terms of the concession agreement shall be
18. deemed to constitute a valid service charge, user fee or tolls
regulations for the purpose of this section.
23. PAYMENT OF SERVICE CHARGE, USER FEES OR TOLLS
(1) Service charge, user fees or tolls shall be paid to the concessionaire
and adjusted in accordance with regulation made by the office or in
the absence of such regulations as may be agreed with the
concessionaire and incorporated into the relevant concession
agreement.
(2) A service charge, user fee or toll levied in respect of public
infrastructure or public assets is valid only if it is charged by the
concessionaire in accordance with the provision of this Law.
24. OFFENCES AND PENALTIES
(1) It shall be an offence for any person to fail or refuse to pay service
charge, user fees or tolls in accordance with this law or any
regulations made under this law or within the terms of concession
agreement, and the offender shall be liable, or conviction to a fine of
19. Ten thousand Naira (N10, 000.00) or one month imprisonment or
any non-custodial sentence provided by the Law.
(2) If it appears to a person employed to collect service charge, user fees
or tolls that a person has refused or failed to pay, the person so
employed may:
(i) Refuse to permit the defaulter to use, or prevent him from
using the public infrastructure or public assets with respect to
which service charge, user fees or tolls are payable; and
(ii) Require him to vacate the public infrastructure or public asset,
or call, where necessary, the assistance of law enforcement
agents.
(3) where a person refuses to pay a service charge, user fees or tolls with
respect to the use of any public infrastructure that is a road or
bridge, the vehicle driven by a person shall be impounded by the
authority person and removed to a vehicle part provided for that
purpose and such vehicle shall remain so impounded until the
payments to the concessionaire of the unpaid toll and the payment
of the fine prescribed by subsection (1) of this section to the
appropriate authority designated by the office or shall remain so
impounded pending the trial of the offence committed under the
said subsection.
20. 25. REGULATION OF SERVICE CHARGE, USER FEES OR TOLLS
(1) The service charge, user fees or toll, that may be levied and collected
by the concessionaire pursuant to any concession agreement, shall in
every case be the service charge, user fee or toll specified or
calculated in accordance with any index or formula or other provision
stated in the concession agreement is entered into prior to the
regulations made by the office.
(2) Each concession agreement shall set out the procedure,
circumstances and formulae by which service charge, user fee or tolls
to be charged by the concessionaire shall be calculated, varied or
adjusted and such provisions shall be observed and agreement fully
implemented.
(3) Where the concession agreement does not set out the provisions for
calculation and adjustment or variation of service charge, user fees
or tolls or such provisions are declared invalid, void, unenforceable or
of no effect, by any competent court who is authority, the
concessionaire shall have the right to make an application to the
Office from time to time for calculation and adjustment or variation
of service charge, user fees or tolls and the Office shall promptly
21. approve or reject any such application having taken into account all
relevant circumstances.
(4) The Office shall have power to vary or adjust or to require the
adjustment of any service charge, user fees or tolls charged by a
concessionaire in respect of a public infrastructure or asset only in
accordance with the provisions of this or as may have been agreed
and incorporated into any relevant concession agreement.
26. POWER TO MAKE REGULATION
(1) The Office shall have power to make regulation to;
(a) designate a public infrastructure or public asset as a service
charge, user fee or toll paying infrastructure or asset; and
(b) establish fair and general conditions designating who, when
and how the public infrastructure or public asset may be used
and from whom service charge, user fee or toll may be
collected.
(2) Regulations made under this section shall provide that breach
of such regulation shall constitute an offence punishable by
fine or by imprisonment as provided in the relevant regulation.
(3) The Office may make such regulations necessary for giving
effect to any provision and purposes of this law.
22. 27. PRE-EXISTING CONCESSIONS
(1) The provisions of this law shall apply to Public Private
Partnerships or concessions entered into before the
commencement of this law and shall preserve and protect all
rights, properties, interests and obligations existing under that
contract and any law applicable when the Public Partnerships
were entered into or the concession was awarded.
(2) The provision of subsection (1) of this section shall only apply
to Public Private Partnerships or concession listed in the
second schedule to this law.
28. INTERPRETATION
“Approving Authority” means the Governor of Ekiti State.
“Authority Person” includes a Police Officr, Public Infrastructure
Inspectors, designated officials of the Office and such other person
as the Office may from time to time appoint.
23. “Concession” means the person organization with whom a
concession agreement concerning a Public Private Partnership
arrangement has been entered into pursuant to this law.
“Concession Agreement” means any agreement between the Office
and any person, firm, or limited liability company for the
construction maintenance, operation or management of public
infrastructure, assets and facilities over an agreed period of time
including, but not limited to the following:
Types of Agreement:-
(i) Design, Build, Operate and Transfer (DBOT);
(ii) Build, Own, Operate and Transfer (BOOT);
(iii) Rehabilitate, Operate and Transfer (ROT);
(iv) Joint Development Agreement (JDA);
(v) Operation and Maintenance (OM)
“Commissioner” means the Commissioner for Finance Ekiti State or
any person charged with responsibility to oversee the Ministry of
Finance.
24. “Governor” means the Governor of Ekiti State of Nigeria.
“Government” means the Government of Ekiti State.
“Person” means an individual and shall include a limited liability
company, a limited liability partnership or any organization duly
registered under the Companies and Allied Matters Act 1990.
“Plan” means a technical working drawing, which shows the design
of a project.
“Preferred Mandate” is a document issued in favour of a successful
pre-qualified bidder.
“Project Agreement” means an agreement between the office and
Private Participant selected by the office (and the State) to carry
out Public Private Partnership, including without limiting the
generality of the foregoing, concession, leases, management
contracts, other forms of agreements with private sector entities,
technical assistance contracts, consulting services contracts,
franchises ad regulatory agreement;
25. “Public Asset” includes the rights of use of any property or
economic opportunity of a public nature or rising from use of public
property.
“Public Infrastructure” means major repairs or maintenance
requiring some changes in design or a form of re-construction of
infrastructure of asset to add strength, thus renewing or extending
the life span.
“Roads” includes:
(1) Roads, the subject of the project agreement;
(2) The roadways, water table, bridges and fording on the line of
the roads;
(3) The land on each side of the roadway and water table up to
the boundary of the road;
(4) All traffic lanes, acceleration lanes, shoulder, median strips,
overpasses, underpasses, interchanges, approaches, entrance
and exit ramps, service areas, maintenance;
(5) Any other areas on or adjacent to any public main road or
parochial road waterway, railway or other routes used for the
public passengers transport; and
26. (6) Any private road designated as a toll under this law or
otherwise be developed or conceded pursuant to a concession
agreement.
“Service Charge, User fee or Toll” means any fee, charge, levy, due
or compensation payable in relation to the use of a public
infrastructure or asset by any person;
“State” means Ekiti State
“The Office” means the Office of Public Private Partnerships.
This printed impression has been carefully compared by me with the
Bill, which has been passed by the Ekiti State House of Assembly and
found by me to be a true copy of the said Bill.
……………………………………………..
MR. BEN. AKINTUNDE FAMOYEGUN
Clerk of the House of Assembly
27. .......
....................................................
Rt. Hon. (Dr.) Adewale A. Omirin
Speaker of the House
Governor’s Assent
I hereby signify my assent to this Bill
DR. KAYODE FAYEMI
Executive Governor of Ekiti State